ASX 200 tumbles 1.4% as mining slump overshadows strong bank earnings
The S&P/ASX 200 fell sharply on Friday, closing 1.4% lower at 8,918 points. Weakness in commodities and profit-taking dragged the blue-chip index into negative territory, despite strong earnings from major banks like Chase and Bank of America.
The decline was driven partly by a sell-off in mining stocks. Evolution Mining's shares dropped nearly 4% as downward momentum hit the sector. Materials giants BHP and Rio Tinto also faced pressure, with weakening demand forecasts adding to the downturn.
Financial institutions, heavily weighted in the S&P/ASX 20, influenced broader market movements. Commonwealth Bank and ANZ reported quarterly results that beat analyst expectations, raising questions about whether record banking margins could hold up against potential economic challenges. Meanwhile, the iShares S&P/ASX 20 ETF ended the week sharply lower, despite the banks' strong performance.
Next week, National Australia Bank's quarterly report will offer further clues on the strength of Australia's credit market. Investors remain cautious as economic headwinds loom over the financial sector.
The market's drop came as profit-taking and commodity weakness combined to push the index lower. While banks posted solid earnings, concerns about future resilience weighed on sentiment. Attention now turns to National Australia Bank's upcoming report for more signals on sector stability.
